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Borrowing firms benefit from factoring services primarily through improved cash flow and liquidity, as they can convert accounts receivable into immediate cash. This enables them to meet operational expenses and invest in growth opportunities without waiting for customers to pay. Additionally, factoring can reduce the risk of bad debts, as factors often take on the responsibility of collections. Lastly, firms can focus more on core business activities rather than managing receivables, leading to increased efficiency.

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3w ago

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